Rumours (probably more than that actually) that the Italians are taking on a 30-35% stake in Chrysler. This gives the cash strapped Yanks much needed small car platforms and provides FIAT with a back door route back into the US.

Baggsy first drive in the new Fiat Viper

Chrysler are now on the verge of applying for Chapter 11 bankruptcy in the US. This allows them to continue trading whilst they re-arrange their finances ($6.9bn debt) and keeps their creditors at bay. Fiat are almost confirmed to take an initial 20% stake which will cost them nothing, rising to 30-35% ultimately

Bad move by Fiat in my opinion. MB tried it and soon got out. Watch out Fiat!

They're not stopping there either. As you may have seen on last night's news FIAT are also looking to take over GM's European operation - that's Vauxhall, Opel and Saab and will make them the world's second largest manufacturer if the Chrysler thing goes through, second to Toyota.

How times change, who would have thought this would have been the case in the British motoring heydays of the 50s/60s!

Stop press, "FIAT take over the world"